Balanced $173 Million Budget Reached as Hingham Curbs Healthcare Costs and Advances Infrastructure

Related Topics: Center for Active Living FY27 Budget

Key Points

  • Select Board finalizes balanced $173 million FY27 budget after healthcare premiums rise 7.1 percent
  • Town avoids using stabilization or tax mitigation funds to close final $239,000 budget gap
  • Deed restrictions will be utilized at 86 Central Street to prevent 40B development and preserve senior housing
  • Board advances $32.5 million Route 3A safety project by authorizing state land-transfer petitions
  • Town Administrator outlines $67 million in upcoming capital projects including HCAL and school roofs

Hingham has finalized a balanced $173 million operating budget for the 2027 fiscal year, closing a final funding gap through lower-than-expected healthcare premium increases. During Tuesday night’s meeting, the Select Board reviewed the final piece of the financial puzzle: a $9 million healthcare insurance budget that reflects a 7.1% increase. While substantial, the figure came in well below the initial 15% spikes forecasted by state officials earlier this winter. Finance Director Katie G. told the board that the 7.1% premium guidance allowed the town to reduce its previous forecast by $239,000, bringing the total budget into a perfect balance without the need for tax mitigation funds or stabilization transfers.

It's good news that it's less than 15 percent, Member Liz Klein noted during the discussion. Member Julie Staley agreed, adding, It was scary when we heard the range of 5 to 15%... when it comes out at this percentage, that’s good news. The board subsequently moved to recommend the total Article F budget package of $173,059,838. The spending plan adheres to the town’s 3.5% growth cap for municipal and school departments, a feat Town Administrator Tom Mayo described as the result of a fantastic budget year bolstered by high investment income. Chair William Ramsey observed that Hingham remains one of the few South Shore communities reaching a balanced budget without the immediate pressure of service cuts or an operational override.

Motion Made by L. Klein to recommend favorable action on Article F budgets in the amount of $173,059,838. Motion Passed (3-0). The board conducted individual votes on department totals, including $73.8 million for education and $21.4 million for public safety. Chair William Ramsey recused himself from the specific $8.9 million police budget vote because his brother serves as a special officer. Motion Made by L. Klein to approve the Police budget of $8,913,028. Motion Passed (2-0-1).

Beyond the immediate budget, the board moved to protect the future of the Lincoln School Apartments at 86 Central Street. Addressing resident concerns that a transfer of the property could lead to a large-scale 40B development, Chair William Ramsey reported that legal research confirmed the town can utilize deed restrictions to maintain the site’s mission for senior and disability housing. I am very much supportive of the concept, Ramsey said. My concerns are about the people that live there, their quality of life... and ensuring that Lincoln School Apartments stays within its mission. Affordable Housing Trust Chair Jack Falby noted that the trust had listened to neighborhood concerns and believed the upcoming Request for Proposals (RFP) process would provide the necessary safeguards. Motion Made by L. Klein to recommend favorable action on Article V regarding the sale, lease, or conveyance of 86 Central Street. Motion Passed (3-0).

The board also cleared a significant legislative hurdle for the $32.5 million Route 3A safety and infrastructure project. The decade-old plan, which includes a road diet near the bathing beach and a new roundabout at Summer Street, requires a petition to the state legislature to authorize the transfer of certain conservation and recreation land for roadway use. Town Engineer JR Frey explained that while some land is technically being taken, much of the impact involves minor grade adjustments and formalizing drainage easements. Deirdre Anderson of the Route 3A Task Force described the project as transformative for the north end of Hingham, emphasizing that it will result in a safer roadway for all travelers. When we do start it, it's going to be a little bit of pain, Ramsey admitted, but the end result is going to be beautiful and it's going to make everything so much safer. Motion Made by J. Staley to recommend favorable action on Article GG for the Route 3A project. Motion Passed (3-0).

Looking toward long-term capital needs, the board reviewed a looming big capital list that includes the $29.9 million Center for Active Living (HCAL) and approximately $37 million in combined town-share costs for roofs and HVAC systems at Plymouth River, South School, and the High School. Tom Mayo noted that while these figures are significant, the town’s AAA bond rating and the fact that $3.2 million in existing debt will roll off the books over the next five years provide a stable foundation for future borrowing. Resident Ness Cornetti questioned if the school project estimates accounted for state reimbursements; Mayo confirmed the numbers assume a conservative 30% reimbursement rate from the Massachusetts School Building Authority.